The leadership lesson here is not about whether Mike Brown should or should not have been rehired; rather, it's about Mr. Gilbert admitting his mistake.

This type of accountable leadership goes a long way in developing high-performing businesses in which employees don't fear reprisals if they take an unpopular position. Leadership like Mr. Gilbert's fosters a culture that allows employees to be committed to decisions because they know mistakes happen — and are OK.

When a business owner openly acknowledges a “mea culpa,” he's showing that he's putting the good of the business before ego. He's also demonstrating that the good of the team comes before what's best for the individual.

Mr. Gilbert's rehiring of Mr. Brown illustrates yet again that we are a country of second chances; we often embrace people who admit their mistakes.

It is not surprising then that another Gilbert-led business, Quicken Loans, is No. 10 in Fortune magazine's 100 Best Companies to Work For (2012).

Great leaders are hard to find. Have you ever been around a leader who is unwilling or afraid to admit a mistake? What are the consequences on the company, culture and employees when leaders hide behind their egos?

Companies where the leader has to “be right” are ones where “games” are prevalent and that also have lots of unproductive and unresolved conflict.

Below are a dozen obstacles that can prevent teams from winning—and companies from succeeding. And all of these attitudes start at the top:

1. There is a risk of losing

2. People are defensive

3. There is little commitment to decisions

4. The focus is on the individual and not the team

5. People hesitate to disagree with others rather than be honest about themselves and others

6. There is lots of drama, mainly blame and excuses for why things don't get done

7. A lack of commitment to the company

8. A lack of focus

9. A lack of buy-in to decisions

10. A belief that things will never change

11. Conflict avoidance

12. Focus is on status and ego before results

In the book, “Great by Choice,” author Jim Collins says that decision-making depends on conflict.

“What we found in companies that make good decisions is that the debate is real,'' Mr. Collins writes. “It is real, violent debate in search of understanding.”

This can only happen if there is trust and mutual respect and where leaders are able admit their mistakes to the team. If the leader can't be honest with himself, he can't successfully lead.

Mr. Gilbert took a vulnerable leap hiring Brown back. It might just be the step the Cavs need to bring back a winning team.

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